European Companies Lean on US Tech Giants, Study Finds

European Businesses’ Ties to U.S. Tech Companies

Key Findings of the Recent Study

In a comprehensive analysis that examined the technology dependencies of business organisations across the continent, the researchers revealed that roughly three out of every four European companies rely on American firms for both email services and broader tech infrastructure.

Major Takeaways

• Dominant Presence: About 75% of enterprises use U.S.-based platforms for email communications.
• Broad Deployment: The same percentage turn to U.S. providers for a wide spectrum of tech stacks—including cloud storage, analytics, and collaboration tools.
• Business Impact: These dependencies position European firms at the intersection of international data regulations and cross‑border policy debates.
• Strategic Risks: Dependence on external vendors raises concerns about data sovereignty and supply‑chain resilience.

Industry Perspectives

Tech analysts highlight that the heavy reliance on U.S. services stems from longstanding providers offering advanced capabilities and widespread integration. At the same time, emerging regulations across the EU could reshape how businesses assess and manage these external dependencies.

Implications for the Future

As the continental marketplace evolves, European organisations may need to diversify their technology portfolios, explore local alternatives, or engage in stronger partnership agreements to secure data control and operational continuity.

European Businesses Lean on U.S.-Based Cloud Giants

Recent research shows that roughly 75 % of publicly listed companies across Europe depend on American technology firms to manage essential business operations.

How the Insight Was Gained

A Swiss service called Proton examined more than 9,600 listed firms by probing the domain name system (DNS) of each company. This method helped identify which email and calendar platforms the companies employ, offering a clear picture of their broader cloud infrastructure.

Regions With the Highest U.S. Dependence

• Iceland – 90 %+ rely on U.S. giants
• Norway – 90 %+
• Ireland – 90 %+
• Finland – 90 %+
• Sweden – 90 %+

These northern and western European states exhibit the strongest reliance on American cloud services, with more than nine in ten companies using firms like Amazon Web Services or Microsoft Azure.

Countries With Lower U.S. Engagement

• Bulgaria – 16 %
• Romania – 39 %
• Slovakia – 43 %

Eastern European markets are comparatively less tied to U.S. providers, but still exhibit significant penetration.

Why This Matters

Proton points out that heavy use of U.S. tech could expose businesses to:

• AI training on proprietary data
• Foreign political influence
• “Warrantless surveillance” by external actors

These risks underscore the potential trade‑offs of outsourcing critical digital infrastructure to overseas firms.

Calls for Local Solutions

“Digital sovereignty is an illusion when Europe’s infrastructure is controlled from abroad,” the report argues. Europe must invest in indigenous tech solutions. Governments are beginning to heed this message.

• Denmark and the Netherlands are exploring switches to domestic or EU‑based providers.
• The United Kingdom’s competition authority recently warned that American cloud services—Microsoft and Amazon—command a dominant share (60–80 %) of the nation’s cloud market. This concentration hampers competition.

Industry experts alert that foreign governments, including the United States, could compel corporate partners to disclose sensitive data. Such possibilities add urgency to the push for a self‑contained European cloud ecosystem.

Where is dependency the highest?

Overview of U.S. Technology Dependence in European Markets

The latest research examined the landscape of American tech influence across five European nations—United Kingdom, Ireland, France, Spain, and Portugal—focusing on how big businesses and key industries rely on U.S.-based technology.

Key Findings by Country

• United Kingdom: The UK’s most valuable firms, those with valuations exceeding €200 billion, are almost entirely dependent on U.S. tech solutions.
• France: French giants also show deep reliance, with the largest companies showing an 80 percent dependence on American software stacks.
• Spain: Spanish leaders are fully dependent, reporting a 100 percent use of U.S. technology in their largest enterprises.
• Ireland: Irish biotech and pharmaceutical entities demonstrate a total reliance on U.S. tech.
• Portugal: Portugal’s telecommunications sector remains less affected, with fewer than 50 percent using any U.S. services.

Sector‑Specific Dependence

• In the UK, the financial and telecom industries deploy U.S. cloud solutions in 95% of firms.
• Spain’s energy and banking sectors are 100% dependent on American technology.
• In France, banks exhibit the lowest penetration of U.S. big‑tech, while Spanish real‑estate entities also show limited reliance.
• Automotive companies in Ireland use American services in less than half of their operations.

Implications for Strategic Autonomy

The French government’s push toward strategic autonomy faces challenges due to pervasive U.S. tech usage, which could expose the nation to “external influence, instability, and surveillance.”

Additional Context

Although the U.K.’s tech sector reportedly exceeds $1.1 trillion (€954 billion), the reliance on American platforms remains startlingly high, raising questions about how Europe’s largest tech market can safeguard its interests.

What is the concern about American restrictions coming from?

US Legal Pressure on Big Tech Threatens European Digital Infrastructure

European businesses and public institutions that rely heavily on American technology services may face significant disruptions as U.S. regulators tighten scrutiny over foreign data storage.

Background: The CLOUD Act

During President Donald Trump’s first term, the Clarifying Lawful Overseas Use of Data Act (CLOUD) was enacted. The law compels U.S.-based tech companies to comply with subpoenas for data stored on any server worldwide, intended to aid investigations of major crimes.

Potential Impact on Europe

• Privacy experts warn that the U.S. could direct tech giants to withdraw services from the European market.
• This could lead to massive disruptions across public services that depend on cloud solutions.
• Microsoft France revealed that the company cannot shield user information from a CLOUD Act injunction.

Policy Shifts under Trump

Trump has also dismantled several security safeguards introduced during President Joe Biden’s administration:

• He demanded the resignation of an oversight board that monitored data transfers between the U.S. and the European Union, effectively removing a key privacy watchdog.

European Outlook

European advocacy groups have cautioned that thousands of EU businesses and state agencies could be compelled to stop using major cloud providers such as Google, Microsoft, or Amazon, should the U.S. enforce the CLOUD Act to the fullest extent.

Related Developments

• Some 26 tech companies have pledged to comply with the EU Commission’s AI Code.